Hynix to Improve Its Graphics Memory Business.

Hynix Semiconductor, one of the world’s largest makers of dynamic random access memory (DRAM) memory chips has reportedly announced intention to form a special task group within the company, which will be solely concentrated on designing, selling and manufacturing of memory for graphics applications. The move may allow the company to improve its gross margin in future.

“The task force, which consists of 150 regular and executive employees, will be in charge of designing and producing graphic memory chips,” Hynix officials are quoted as saying by Korea Times news-paper.

The so-called GDDR memory is optimized for point-to-point interconnections and very high speed operation in order to provide extreme bandwidth for contemporary graphics processing units (GPUs). Usually, high-speed GDDR memory is sold at pretty high price-points, even though, in not very large quantities. In case the company succeeds in grabbing a part of the GDDR market from its rivals Samsung and Qimonda, the company may report higher margins to its investors.

Special task group for GDDR product lineup is likely to allow Hynix to ensure that the company’s high-end offerings for graphics applications are present on the market on time and, in the best case scenario, ahead of the world’s largest supplier of GDDR products Samsung Electronics.

Later this year at least one graphics chip designer – ATI Technologies – is expected to utilize next-generation GDDR4 memory along with its product code-named R580+, which will require memory makers to ramp up GDDR4 production. In order to ramp up manufacturing of GDDR4 devices quick enough, the DRAM makers have to put some efforts into it and this is where Hynix’s special group within the company may come into play.

GDDR-class memory is not only used on graphics cards for gamers or professional users, but also in game consoles, which is a huge market. According to market researcher International Data Corp., the world’s GDDR chip market is expected to expand 10% year-on-year to $2.7 billion in 2006.